Computed head-to-head · 6 dimensions
COST vs PEP
Costco Wholesale Corp versus PepsiCo, Inc. — yield, safety, growth trend, cost, scale, and tax treatment.
COST wins 3–2 on our six-dimension comparison, but PEP can still be the better fit depending on your priorities — see each dimension below.
COST or PEP — which is better?
COST wins this comparison 3–2 across 6 dimensions. COST yields 0.56% — lower than PEP's 4.46% — and carries a 8.3/10 dividend safety score (Strong) vs 5.6/10 for PEP (Mixed). COST wins 3–2 on our six-dimension comparison, but PEP can still be the better fit depending on your priorities — see each dimension below.
On yield alone, PEP generates 4.46% vs 0.56% — a 3.90% difference that translates to $3,900 more per year on a $100,000 investment. On dividend safety, COST scores 8.3/10 (Strong) vs 5.6/10 (Mixed) for PEP — investors prioritizing income reliability should weight that gap alongside the yield difference.
Scorecard at a glance
| Dimension | COST | PEP | Winner |
|---|---|---|---|
| Yield | 0.56% | 4.46% | PEP wins |
| Dividend safety | 8.3/10 | 5.6/10 | COST wins |
| Growth trend | -0.04% vs 5y | +1.42% vs 5y | COST wins |
| Volatility (beta) | 0.91 | 0.36 | PEP wins |
| Scale | $465.4B | $182.3B | COST wins |
| Tax efficiency | Qualified-eligible | Qualified-eligible | Tie |
| Overall | 3 wins | 2 wins | COST wins |
Dimension by dimension
PEP wins on yield (4.46% vs 0.56%)
On a $10,000 investment that's about $390 more in annual dividend income before taxes — though higher yield often comes with higher risk.
PEP's higher yield (4.46%) looks attractive but investors should weigh whether the extra income compensates for any additional risk versus COST's 0.56% — especially if the higher yield is driven by covered calls or a falling share price.
COST wins on safety (8.3/10 vs 5.6/10)
Our score combines yield zone, payout ratio, trend vs 5-year average, instrument type, and size. COST scores better on the weighted average of those factors.
COST (8.3/10) scores 2.7 points higher than PEP (5.6/10). A higher safety score means lower historical indicators of dividend cut risk — payout ratio, yield zone, and trend all factor in.
COST shows healthier dividend-vs-price trend
COST's yield is 0.04% below its 5y average, versus 1.42% for PEP. Lower (or below-average) yield trend often means price appreciation outpaced distributions — a healthier signal.
PEP is less volatile (beta 0.36 vs 0.91)
Lower beta means smaller swings vs the S&P 500 — generally a steadier hold for income investors.
COST is 2.6× larger by market cap
Larger companies tend to have tighter spreads, deeper liquidity, and lower closure risk.
Both pay qualified-dividend-eligible distributions
Neither is structurally flagged for ordinary-income tax treatment. Most distributions should qualify for the lower long-term capital gains rate if holding-period requirements are met.
Full breakdown per ticker: are COST dividends qualified and are PEP dividends qualified — each with the after-tax income at every federal bracket.
How we compare these
Every comparison on this page is computed from current public data, not written by hand. Yield comes from the most recent dividend distribution annualized over current price. Safety scores combine yield zone, payout ratio, trend vs 5-year average, instrument type, and size — see our methodology for the exact formula. Tax-efficiency flags identify covered-call ETFs, REITs, and mREITs which distribute primarily as ordinary income.
This is educational, not investment advice. Scores reflect a snapshot of public data on the "as of" dates shown on each ticker's safety page. Verify on the issuer's investor relations page or your brokerage before making decisions.
Frequently asked
COST or PEP — which is better?
COST is better on our scoring, winning 3–2 across six dimensions: yield, dividend safety, growth, cost, scale, and tax treatment. COST wins 3–2 on our six-dimension comparison, but PEP can still be the better fit depending on your priorities — see each dimension below.
Which is better for income, COST or PEP?
COST wins 3–2 on our six-dimension comparison, but PEP can still be the better fit depending on your priorities — see each dimension below.
COST vs PEP: which has a higher dividend yield?
COST yields 0.56% and PEP yields 4.46%. On a $10,000 investment that's about $390 more in annual dividend income before taxes — though higher yield often comes with higher risk.
Is COST or PEP a safer dividend in 2026?
COST scores 8.3/10 (Strong) on the Infnits dividend safety scale. PEP scores 5.6/10 (Mixed). COST is the safer pick on our scoring model.
Which has better dividend growth, COST or PEP?
COST's yield is 0.04% below its 5y average, versus 1.42% for PEP. Lower (or below-average) yield trend often means price appreciation outpaced distributions — a healthier signal.
COST vs PEP: which is more tax-efficient?
Neither is structurally flagged for ordinary-income tax treatment. Most distributions should qualify for the lower long-term capital gains rate if holding-period requirements are met.
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Compare both against your actual holdings
Put COST and PEP into the free analyzer with the rest of your portfolio. You'll see what each one contributes to your annual income, your weighted safety score, and whether adding COST diversifies you or just duplicates what you hold. No account, no download.